Finance

Finance - portfolios

Stock A - expected return = 7%, standard deviation of turn = 10%, beta = 2

Stock B - expected return = 6%, standard deviation of turn = 20%, beta = 1.5

correlation coefficient = 0.5

risk free rate = 1%

market risk premium = 4%

60% of funds invested in Stock A, 40% of funds invested in Stock B.

1) Find expected return of portfolio

2) Find standard deviation of portfolio

3) Find Sharpe ratios of Stock A, Stock B and portfolio

4) Find beta of portfolio

5) Find expected return of portfolio, under CAPM

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91602416

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